Securities Lending

Leverage Your Investment Portfolio

Borrow against your shares, ETFs, and managed funds. Access lower rates and keep your investments growing.

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What is Securities Lending?

Securities lending (also called margin lending or portfolio lending) allows you to borrow money using your investment portfolio as security - without selling your investments.

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Lower Interest Rates

Typically 1-2% lower than unsecured loans because your portfolio is the security

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Keep Investing

Your investments stay in the market and continue to grow while you access the equity

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Tax Benefits

Interest may be tax-deductible if used for income-producing investments

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Flexible Use

Use funds for property deposit, renovations, new investments, or business capital

How It Works

Your Portfolio is Assessed

Lender evaluates your shares, ETFs, and managed funds. Blue-chip stocks (ASX200) typically get highest borrowing ratios.

Calculate Your Borrowing Power

You can typically borrow 50-70% of your portfolio value (called LVR). More stable stocks = higher LVR allowed.

Loan is Secured Against Portfolio

Your investments stay in your name and continue earning dividends/returns. Lender has a security interest only.

Access Your Funds

Funds transferred to you. Use for any purpose - property, investments, business, or personal needs.

Typical Rates & Terms

Securities Lending

4.5% - 6.5%

✓ Portfolio as security
✓ Interest-only option
✓ Tax-deductible interest
✓ Keep your investments

Personal Loan

8% - 15%

✗ No security required
✗ Must sell investments
✗ Higher interest rate
✗ Non-deductible interest

Who Can Use Securities Lending?

✅ Ideal For:

High-net-worth individuals with substantial portfolios
Investors wanting to leverage without selling
Property buyers needing a deposit
Business owners needing working capital
Those with $100k+ in eligible securities

📋 Requirements:

Portfolio value: Typically $100k+ minimum
Eligible securities: ASX-listed shares, ETFs, managed funds
LVR limits: Usually 50-70% of portfolio value
Income verification: Proof of ability to service loan
Portfolio diversification: Better terms for diversified holdings

Important Considerations

⚠️ Market Risk

If your portfolio value drops, you may need to provide additional security or repay part of the loan. This is called a "margin call."

📊 LVR Monitoring

Lenders monitor your LVR daily. If it exceeds limits (e.g., goes above 70%), you'll need to top up security or reduce the loan.

💡 Best Practice

Borrow conservatively (e.g., 50% LVR instead of 70%) to avoid margin calls during market volatility. Keep a cash buffer for emergencies.

Common Uses for Securities Lending

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Property Deposit

Access funds for a property deposit without selling investments. Keep portfolio growing while entering property market.

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Investment Opportunities

Leverage portfolio to invest in new opportunities. Potential to amplify returns (with higher risk).

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Business Capital

Fund business expansion, equipment, or working capital at lower rates than business loans.

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Renovations

Fund home improvements without selling shares or taking expensive personal loans.

Unlock Your Portfolio's Potential

Compare securities lending options from 8+ specialist lenders. Get a personalized quote in minutes.

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Speak to our specialists about leveraging your investment portfolio

Richard (Ricky) Esteb

Licensed Mortgage Broker & Founder

Credit Rep #574071 ACN 681 636 056 83+ Lender Panel

With direct experience helping Australians secure home loans, car finance, and business funding, Ricky founded Esteb and Co to bring transparency and technology to mortgage broking. Every piece of content is written from real-world lending experience.

✓ Verified & Last Reviewed: December 2025 | Content meets ASIC regulatory requirements